Entrepreneur's Handbook

OCTOBER 3, 2023

This allows you to increase your LTV by 25%, and it’s a really simple change to make. How to Guess Retention Numbers If you apply this logic to any subscription company that’s sophisticated enough to understand its LTV and has been working on it for a few years, you can guess they’re using this tactic.

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Tomasz Tunguz

JUNE 2, 2015

In a recent podcast , Ron Gill, the CFO of Netsuite - a $7B+ market cap company with about $600M in 2014 revenue, which provides ERP software to mid-market companies - articulated the importance of the Lifetime Value / Cost of Customer Acquisition (LTV/CAC) ratio for his company. In the 2009-2011 period, churn mitigation improved the LTV/CAC.

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TechCrunch

AUGUST 22, 2022

It should also know what the lifetime value (LTV) of a customer is and what impact its brand reputation has when things don’t go right. Customer LTV. $50. Lost LTV due to churn. Percentage of LTV attributed to cost of acquisition. Percentage of LTV attributed to brand reputation damage. Total loss per month.

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TechCrunch

JANUARY 18, 2023

ThriveCart today announced that it raised $35 million in a funding round led by LTV SaaS Growth Fund, the company’s first public outside investment. ThriveCart quickly caught on with businesses, it seems, growing to tens of thousands of customers and more than $1 billion in sales processed annually.

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TechCrunch

FEBRUARY 10, 2023

LTV, or lifetime value: How much is each customer worth, on average, once you sign them up? The pricing model isn’t usually part of the business model itself (it falls under LTV), but if you’re doing something unusual or creative with your pricing, it’s worth including that, either here or on your go-to-market slide.

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TechCrunch

FEBRUARY 27, 2023

Using predictive LTV to juice up marketing campaigns Image Credits: ChrisBaynham (opens in a new window) / Getty Images Last fall, Voyantis CEO Ido Wiesenberg shared a TC+ post with several tactics for reducing customer acquisition costs via predictive modeling.

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Both Sides of the Table

MAY 2, 2015

A great CFO will make sure you’re accurately measuring your CAC (along with a great marketer, of course) and your LTV. As we know your LTV must exceed your CAC but what if your LTV is only theoretical? If you have tons of access to capital it might not matter that payback is in 9 months given LTV/CAC is 5x.

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TechCrunch

MAY 9, 2022

A founder’s guide to calculating CAC and LTV the right way. Blair Silverberg, CEO and co-founder of Hum Capital, says founders need to get a firm handle on LTV (lifetime value) and customer acquisition cost (CAC) before they start sending out pitch decks. A founder’s guide to calculating CAC and LTV the right way.

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TechCrunch

NOVEMBER 23, 2022

Holiday shoppers tend to be the worst when it comes to customer lifetime value (LTV). 4 ways to use e-commerce data to optimize LTV pre- and post-holiday by Ram Iyer originally published on TechCrunch. Even as brands have visions of profits dancing in their heads, there’s another side to the holiday season they must consider.

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TechCrunch

NOVEMBER 9, 2022

The latter will be used to come up with features including a lifetime value (LTV) prediction tool. Adapty’s decision to add an LTV prediction tool is inspired both by customer demand and by firsthand experience from Davydov and his co-founders, Kirill Potekhin and Dima Podoprosvetov.

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TechCrunch

DECEMBER 21, 2021

Here’s how: Pull a list of your most dedicated users for each metric that matters to your company, such as highest LTV, most frequent user, highest number of purchases or even highest referring customer. Your goal is to generate a list of customers, and the exact number may vary depending on the stage of your company.

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Entrepreneur's Handbook

JUNE 14, 2023

The value you capture from users is spread across their lifecycle, so being confident about your LTV and the spending in marketing channels is hard (not impossible, but hard) Any time you do something like test new pricing (which you should), you can’t really know the impact on LTV because those new users haven’t reached the end of their lifecycle.

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TechCrunch

NOVEMBER 23, 2022

4 ways to use e-commerce data to optimize LTV pre- and post-holiday. “Consumer brands who know how to use their data to maximize LTV will win the holidays and set their brand up for growth well into the new year.” ” 4 ways to use e-commerce data to optimize LTV pre- and post-holiday.

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Andreessen Horowitz

AUGUST 22, 2023

If your customer lifetime value (LTV) is 3 or more times your customer acquisition cost (CAC) within 5 years, that means your company has efficient returns on sales and marketing spend. To put it simply: higher LTV:CAC → higher margins → higher valuation. A few notes before we jump in.

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TechCrunch

APRIL 7, 2023

.” Cover slide Market slide Problem slide Mission slide (“We are here to make 9 lives 10”) Competition slide Product slide How it works slide Why Now interstitial slide Business metrics slide Milestones slide Team slide Use of Funds slide Performance interstitial slide CAC slide Go to market/growth channels slide Value Prop slide Churn analysis (..)

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For Entrepreneurs

DECEMBER 10, 2015

Overview The old formula that everyone uses for customer lifetime value (LTV)) –average gross profit per customer divided by churn – ceases to work properly when you have very long customer lifetimes and negative churn. LTV can become infinite, which clearly doesn’t reflect reality.

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Entrepreneur's Handbook

NOVEMBER 17, 2022

Profitwell’s Patrick Campbell dug into data from 4,200 e-commerce brands and found higher discounts at purchase correlate with lower LTV. According to Profitwell, discounted customers are more likely to churn out and look for a cheaper alternative, leading to a lower lifetime value (LTV). Credit: Patrick Campbell.

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TechCrunch

DECEMBER 16, 2022

4 ways to use e-commerce data to optimize LTV pre- and post-holiday. Sanroman intends to deploy the new funding into continued expansion of its team and geographical presence in Latin America and the United States as well as establishing a team in Europe, where it already has some connections.

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TechCrunch

MAY 9, 2022

Subscription model apps can increase their LTV (customer lifetime value) by getting new audiences that weren’t accessible before. As you get more users with greater purchasing power in your app, the LTV increases. Improve marketing metrics through cheaper access to expensive audiences. How does it work?

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TechCrunch

JULY 26, 2022

A founder’s guide to calculating CAC and LTV the right way. Blair Silverberg is co-founder and CEO of Hum Capital , a financial services company using technology to accelerate the fundraising process. More posts by this contributor. 8 steps for building a financial model to calculate your fundraising needs.

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OnStartups

MAY 18, 2021

Once your LTV is a multiple of your COCA, you’re ready to start turning the knob and scaling the business a bit (hiring more sales people). But, if your LTV is way lower than your COCA, proceed with caution. If there is no hope for LTV getting higher than COCA, you’ve got a problem.

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Tomasz Tunguz

NOVEMBER 8, 2017

Founders often describe their unit economics in terms of their LTV/CAC ratio - the ratio of the Lifetime Value (LTV) of a customer to the Cost of Customer Acquisition (CAC). The LTV/CAC metric can be a powerful metric to unpack the health of the go-to-market team of a company, as Netsuite has shown. Use payback period instead.

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American Entrepreneurship

SEPTEMBER 22, 2023

through Q2 and well below industry averages), and strong unit economics like LTV/CAC (13x cumulative ratio through Q2). Kin is also succeeding in geographies where other legacy insurers are either leaving or stalling growth. The results include stellar profitability metrics like adjusted loss ratio (34.5%

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TechCrunch

NOVEMBER 29, 2022

4 ways to use e-commerce data to optimize LTV pre- and post-holiday. Consumer brands who know how to use their data to maximize LTV will win the holidays and set their brand up for growth well into the new year.”. 4 ways to use e-commerce data to optimize LTV pre- and post-holiday. Silicon Stressed.

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Entrepreneur's Handbook

APRIL 25, 2023

In this week’s edition, we discuss How to evaluate your new business ideas (it has little to do with sales, CAC, LTV, EBITDA, or any other financial metrics) The product-market fit “insane mode” shortcut Let’s get to it.

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AsiaTechDaily

APRIL 16, 2023

It may be diverse in each industry like LTV, CAC, MoM, etc. What is your typical investment range and how many startups do you invest in per year in general? Up to US$5 million. We invest globally. What would be the KPI that you usually check about the startups’ growth? Top line growth and investment spend from previous funding/ revenue.

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Entrepreneurs' Organization

APRIL 30, 2021

The better and more honest metrics to measure are: Cost per LTV (for example, it costs us $100 to make $4,000 in revenue over the life of that customer). It’s not accurate, and it doesn’t tell us anything of real value. What may look like a great ROI can, in reality, mean the business is losing money.

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TechCrunch

AUGUST 24, 2022

Sales and marketing efficiency metrics such as LTV-to-CAC, CAC payback and the magic number have long been mainstays in board decks and fundraising materials. There is no shortage of efficiency metrics that cloud executives can track to gain a better perspective of their overall economics.

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TechCrunch

NOVEMBER 11, 2022

If a startup knows its economics, CAC and LTV, it can predict how much revenue it will generate if it invests a certain amount in growth. Venture capital and venture debt are longer-term capital sources, with a typical term of two to four years.

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TechCrunch

MARCH 27, 2023

Even typing it feels like watching paint dry because when this phrase is uttered, people can’t help but jump to metrics like CAC/LTV, burn efficiency, OpEx ratios, and of course, the good old rule of 40. One retro-cool phrase experiencing a resurgence in our industry is efficient growth.

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TechCrunch

MAY 12, 2022

A few key principles that any growth specialist should know and be questioned on in interviews include: How LTV (lifetime value) and ROI (return on investment) work. Once you’ve nailed down the type of growth hire you need, you must ensure that their resume doesn’t do all the talking. Proper hypothesis testing frameworks.

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TechCrunch

JULY 26, 2022

Instead, look for ways to increase LTV with a larger catalog and use third–party suppliers to reduce the cost of goods sold. Dialing up your marketing budget during a downturn is the wrong call, since “margins are everything” and consumers are more skeptical than ever.

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Dream It

JULY 20, 2020

Here are some useful metrics Steve recommends including: Sales Velocity Revenue LTV to CAC Ratio Trials completed and the rate at which they’re being completed Close-ratio Investors put money in lines, not points. This assures investors that you are moving in the right direction and have enough velocity to hit your goals.

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TechCrunch

JULY 8, 2022

As a result, the emphasis is often around financial performance, drilling down to detailed metrics such as gross margins, sales rep productivity, LTV, CAC, payback periods and more. The focus of diligence tends to be on aspects of a product that can be measured.

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Entrepreneurs' Organization

APRIL 29, 2020

Can you increase customer lifetime value (LTV)—meaning, can you increase how much they spend with you over time, and can you create new leads for your business? Engaging clients through knowledge sharing, thoughtful ideas, and proactive support will build a strong, long-lasting relationship. Focus on Growth and Innovation.

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TechCrunch

APRIL 27, 2023

In fact, if the company wasn’t seeing extraordinary traction and lifetime value (LTV), these numbers would be hard to believe. Image Credits: Careerist Careerist finds itself in a curious space here, with a huge opportunity. But with the traction in place, these numbers seem more or less plausible.

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abovethecrowd.com

SEPTEMBER 4, 2012

Many consumer Internet business executives are loyalists of the Lifetime Value model, often referred to as the LTV model or formula. Lifetime value is the net present value of the profit stream of a customer. This concept, which appears on the surface to be quite benign, is typically used to compare the costs of acquiring [.].

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